Tim Mohin: EU Sustainability Rules Begin to Bite

In the last month, two new regulations have been formally adopted: the EU’s Eco-design Sustainable Products Regulation (ESPR) and the Corporate Sustainability Due Diligence Directive (CSDDD).
The ESPR is a framework regulation that will eventually require the majority of products sold on the EU market (food and medicine are the only exceptions) to make their products more sustainable, or risk penalties still to be determined by member states. A critical and challenging part of this rule is creating digital product passports containing information about materials, repair and recycling instructions, and environmental performance.

Only a few months ago, it looked like the CSDDD might not pass, but after some key changes reduced the number of affected companies, it scraped through. As of July 25th, 2024, it is an official law, and the EU Commission released FAQs to summarize the rules. Member states have until July 2026 to transpose the rule into national law, and the first group of companies must comply by 26 July 2027.

Find out more here.